Auto supplier Visteon offers buyouts

Dearborn, November 6, 2002 The AP is reporting that automotive parts supplier Visteon Corp. is offering early retirement packages to 12 percent of its U.S. salaried work force.

The Dearborn-based company, which spun off from Ford Motor Co. in June 2000, is offering voluntary early retirement deals to 1,100 of its 9,300 white-collar employees in the United States, The Detroit News reported in a Tuesday story.

To be eligible for early retirement, an employee must be 55 or older by years end with 10 years experience or have completed 30 years of service with Ford and Visteon.

Visteon is offering enhanced retirement benefits to employees who accept the offer, spokeswoman Tamera Hallums said.

The company declined to provide details. The benefits will vary based on an employee's position and years of service and do not include an upfront cash payment.

Visteon's losses have grown over the first nine months of the year to $318 million from $104 million, despite a 4 percent increase in revenues.

The latest results include a $265 million write-down to comply with new accounting standards. Excluding special charges, Visteon has made about $38 million this year.

"This has been a challenging year for Visteon," human resources Vice President Bob Marcin told employees in an e-mail last week that outlined the retirement program. "We continue to face extremely aggressive competition and a challenging economy. ... We must adjust our costs to the level of business."

Visteon shares have declined by more than 50 percent over the last year. In trading Tuesday, Visteon shares rose 3 cents, or 0.4 percent, to $6.90 on the New York Stock Exchange.